Drake & Scull swings to $1bn profit post-restructuring

Drake & Scull International turned a profit last year following the completion of its restructuring plan.

The contracting company, which trades on the Dubai Financial Market, swung to a net profit of AED4 billion ($1 billion) last year, compared to a net loss of AED367 million in 2023.

Revenue marked a 20 percent rise to AED104 million in the 12-month period, up from AED86 million in 2023.

Shares in the construction engineering company were down marginally at the opening of trading on Thursday morning at AED0.345.

​The company’s shares were suspended from trading on the DFM due to its financial restructuring efforts. Trading resumed on May 29, 2024, with shares opening at AED0.25. The share price has since risen by nearly 40 percent.

Theyab Al Nahyan, chairman of DSI, said the debt reduction and fresh capital injection have strengthened its balance sheet, which will help drive growth.

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DSI will capitalise on emerging opportunities in the Mena region and beyond, Al Nahyan said.

Total assets more than doubled to AED647 million from AED315 million in 2023.
Shareholder equity improved to AED152 million last year, reversing a previous deficit of AED4.4 billion.

The company’s restructuring plan, approved by the Dubai Court of Appeal in November 2023, resulted in a liabilities write-back of AED3.8 billion and conversion of AED368 million liabilities into mandatory convertible sukuks.

The company raised AED454 million through a share capital issuance and has won contracts worth AED1 billion.